It's 2010, why are you still paying for television at all? Do you really watch any of those stupid overpriced cable channels? I get 22 channels for free(Including ABC, NBC, CBS, CW, Fox, MyNetwork, PBS, Create, Documentary, Megahertz, and MTV3), and would get more if I had an outside antenna. Unless your up a canyon somewhere, or out in the sticks, your crazy to be paying for TV these days.
If your goal is maximizing your pot, well obviously taking advantage of an investment that you have an inside track as to the level of risk, such as in your situation, makes a ton of sense. If your goal is having your enough (whatever that may be), well, that might make for a different decision altogether.
Personally, if I found myself in your situation, I would cut a check today and be done with it. Especially with a windfall of that order. Sure, I would be foregoing a portion of potential future earnings, but with another $500k to play with, really, who cares? Both potential future earnings are beyond my enough, so I may as well get rid of that mortgage around my neck and enjoy the peace. :)
Who would I be to look a gift horse in the mouth? If someone is willing to let go of a perfectly good vehicle at a discount all because of a bit of over-hyped media attention, I certainly won't complain!
As a matter of fact, the wife and I are planning on a replacement vehicle in a few months once things warm up a bit. So hoping the drumbeat keeps up for a little while longer... :)
Joel you present some great arguments for not pre paying. Ultimately, the choice is very personal and differs for each individual.
As for me, I still choose to prepay my mortgage. My goal is to be mortgage free by 30. This will allow my wife to be a stay once we're ready to have kids.
Also, I currently don't have anything (working on a side business though) that gives me a guaranteed or almost guaranteed rate of return above our 5% mortgage rate.
Actually, holding your money in liquid form is a bad idea with inflation. True, inflation does work the opposite way with debt in that it makes it worth less later. However, the money in your bank account is also losing it's value at the same rate. To truly protect against inflation you'll want to convert the money into either other currencies or into physical commodities.
There are thousands of recalls every year, only a fraction gain media attention. I agree with all the other "yes" comments up there:
Toyota is handling their crisis well.
Toyota has had, until now, a flawless reputation.
Toyota consistently lists as 5 of the 10 top used vehicles.
I have a 2007 Yaris. I like it very much, and I like the dealer as well. I think it is really unfortunate that so many people are willing to make decisions based on emotions and what they're seeing in the news rather than doing a little research themselves to uncover a fuller, more balanced story.
I am not a netspend user but i have a pre paid card and i personally love it. this is regarding people who say netspend or anything is a SCAM, unless you've been personally scammed by them then yes say whatever you please but people who just recieve these cards in the mail.. SO THE **** WHAT!! nothing will happen unless you activate it or whatever & it has nothing to do with idenity theft or credit issues.
As for the people with children getting them in their names, one of these post are correct, When your children play games or whatever on the internet theres ads or some bullshit that will make them sign up for something.
You guy should be smart and not bash a company who has never done anything to you.
I'm tired of my VW dying all the time, so I'm going car shopping this weekend. I was going to look at Toyotas anyway; this couldn't have happened at a better time for me.
I would totally buy one. I think this whole thing is getting blown out of proportion. People love to bring down companies in the number one spot.
My parents had an American made mini-van that had not one, but FOURTEEN recalls (or at least, that's when we stopped counting) -- including issues with seat belts that came undone in a crash. The sliding door actually fell off too.
I guess domestic cars are like Windows products -- so used to bugs and problems that they're practically a source of entertainment.
For about a year I made an extra principle payment on my mortgage. Then I took a step back to think about why.
First of all, the last time my home was appraised, it came in about 30k higher than when I bought it about 3 years ago (I live in an urban area).
Second of all, I'll probably only live in this house for 5 more years.
Third, the interest is tax-deductable.
Fourth, if I'm going to put money into my house, i'd rather put it towards home improvements (which my home desperately needs) to not only bolster it's value, but also leads to my own greater enjoyment of the home.
Why lock up that money that I'm just going to end up getting back when I sell the house? Doesn't make much sense to me.
IF I were to buy another Toyota, it would be a model from before the drive-by-wire system got regular use within the company. One would think Toyota would have learned from VW's reliability issues with being so reliant on the ECU for everything.
I used to be a strong advocate of paying down the mortgage early. In fact, for a dozen years I have dutifully paid down my mortgage with extra principal payments. I've now got just over $100k to go before it is all paid off.
That being said, starting in 2009, I began taking the money I was applying towards the extra principal and "holding it" in a "high-interest" savings account because I firmly believe high inflation is coming thanks to our government's reckless money printing and deficit spending.
In such a high inflation environment, it would make little sense to pay down the mortgage early. Why pay down a 4% 30-year loan with today's more valuable dollars if high inflation is going to utterly destroy the value of them later?
For now, I'll continue to hold that money until I am convinced the gov't has returned to a path of fiscal restraint and sound fiscal management that will maintain some semblance of integrity to our currency. When/if they do, I'll take all the money I've been collecting and apply it to the mortgage.
Otherwise, it will eventually be committed to other places.
I would love to buy a toyota! I wish I had enough cash to walk into a toyota dealer today and walk off with a car. I am sure some dealers would be taking a lot off the top to move some inventory now.
For me it makes sense to pay down my mortgage at least until I hit the 20% equity mark so I'm not throwing money at PMI. The sooner I jump that hurdle, the better the ROI of those extra payments is over the next several years. After clearing that magic number, I'll likely need to reassess where it makes sense to put the extra money (most likely retirement accounts). As an employee, I don't have a growing 20% business to invest my money into. I suppose I could lend it out, but venture capital seems outside my current risk tolerance.
I relocated at the (literal) drop of a hat in mid-2008 to get a better job and close the gap on a long distance relationship. I had an apartment at the time and a roommate, so essentially I allowed the roommate to maintain the apartment until the end of the lease, paid 1/2 the rent by mail each month and didn't lose out on my deposit or any fees.
I moved from Northwestern PA to Southeastern PA where it's about 75% more expensive to live. Living with my boyfriend has been a huge cost saving measure and allowed the move to be a little less of a financial issue.
I can't see how the move would have been as easy (or even possible) had I owned my former home. When your job sucks (or is non-existant) or you're driving 350 miles to see your significant other, well, a move isn't a bad idea!
I'm doing a homemade gift, a lamp, and doing dinner at home. The personalized romance novel seems like a "novel" idea, har har har. I might give it shot seems fun and unique.
I'd definitely buy one if I were looking for a new car right now. But my 1998 Toyota Avalon with 235,000 miles on it is still running perfectly and looks like it will be for quite a while yet, so I guess I'll miss out on this opportunity.
there is no 30 day trial. They charged my credit card 30 seconds after getting it in the order then claimed for the next 3 days that they did not have any order yet from me. There are NO LIVE SERVICE PEOPLE. Instead they offer an animated live chat with operators in a foreign country named"Honey" Stella" and "Ruby" who ask the same id questions have you hold for 30 minutes and then come back and tell you to check back in 2 hours.
There are hundreds of people in the same boat. DO NOT ORDER. The good reviews u read are placed by employees meant to dupe you. They are making tons of money by overcharging cards I'm calling the attny genl and better business bureau.
Come on people, the only reason the Us government is so hard on Toyota is because they are the competition!! How many recalls have there been with other car manufacturers and there has not been a big issue made of it. It is the US government who owns GM so of course they want them to go under. Not going to happen. And no they are not getting greedy or cutting corners. They make the same excellent car they always have. Epic fail? ... crap!!
Age 25, been saving since 16. Maybe we should stop focusing on ages, but I think it's important for young people to realize that "earlier is better." The site already posts its fair share of "later is better than never" stories, so why not something for the younger crowd?
I'll be forwarding this story to all of my 20-something friends!
If you feel like you can't save anything, this article probably wasn't meant for you. Attitude plays a HUGE role in personal finance. It doesn't matter what you earn - save 6-10%. Cut back on cable, trim your cell phone features, or eat out one less night per week. It's doable with the right mindset.
It appears Toyota may have royally screwed up this time, but from personal experience, I have a Toyota 2001 Avalon that has been virtually FLAWLESS. It is well-kept, always garaged, looks great, runs great (currently 175,000 miles) follow the maintenance schedules religiously -- and has been a total delight.
Having said that, Toyota corporate seems to have gotten a royal case of the same stupids as corporate America. GREED and cutting corners. I believe epic fail may be at hand!
I agree with your thought here...it would be nice for a reality-check article on when people DO start to save, and keying in on how to guide the 30-somethings in there financial and savings choices!
It's 2010, why are you still paying for television at all? Do you really watch any of those stupid overpriced cable channels? I get 22 channels for free(Including ABC, NBC, CBS, CW, Fox, MyNetwork, PBS, Create, Documentary, Megahertz, and MTV3), and would get more if I had an outside antenna. Unless your up a canyon somewhere, or out in the sticks, your crazy to be paying for TV these days.
Depends on your goals, of course.
If your goal is maximizing your pot, well obviously taking advantage of an investment that you have an inside track as to the level of risk, such as in your situation, makes a ton of sense. If your goal is having your enough (whatever that may be), well, that might make for a different decision altogether.
Personally, if I found myself in your situation, I would cut a check today and be done with it. Especially with a windfall of that order. Sure, I would be foregoing a portion of potential future earnings, but with another $500k to play with, really, who cares? Both potential future earnings are beyond my enough, so I may as well get rid of that mortgage around my neck and enjoy the peace. :)
Who would I be to look a gift horse in the mouth? If someone is willing to let go of a perfectly good vehicle at a discount all because of a bit of over-hyped media attention, I certainly won't complain!
As a matter of fact, the wife and I are planning on a replacement vehicle in a few months once things warm up a bit. So hoping the drumbeat keeps up for a little while longer... :)
Joel you present some great arguments for not pre paying. Ultimately, the choice is very personal and differs for each individual.
As for me, I still choose to prepay my mortgage. My goal is to be mortgage free by 30. This will allow my wife to be a stay once we're ready to have kids.
Also, I currently don't have anything (working on a side business though) that gives me a guaranteed or almost guaranteed rate of return above our 5% mortgage rate.
The decision is easy for me. Get rid of all of my debt. Emotionally, I would feel better off if I truly owned my home.
I am not fortunate enough to have side business in which to invest. Even if I did, the business may not always be there. The mortgage will be.
Actually, holding your money in liquid form is a bad idea with inflation. True, inflation does work the opposite way with debt in that it makes it worth less later. However, the money in your bank account is also losing it's value at the same rate. To truly protect against inflation you'll want to convert the money into either other currencies or into physical commodities.
There are thousands of recalls every year, only a fraction gain media attention. I agree with all the other "yes" comments up there:
Toyota is handling their crisis well.
Toyota has had, until now, a flawless reputation.
Toyota consistently lists as 5 of the 10 top used vehicles.
I have a 2007 Yaris. I like it very much, and I like the dealer as well. I think it is really unfortunate that so many people are willing to make decisions based on emotions and what they're seeing in the news rather than doing a little research themselves to uncover a fuller, more balanced story.
I am not a netspend user but i have a pre paid card and i personally love it. this is regarding people who say netspend or anything is a SCAM, unless you've been personally scammed by them then yes say whatever you please but people who just recieve these cards in the mail.. SO THE **** WHAT!! nothing will happen unless you activate it or whatever & it has nothing to do with idenity theft or credit issues.
As for the people with children getting them in their names, one of these post are correct, When your children play games or whatever on the internet theres ads or some bullshit that will make them sign up for something.
You guy should be smart and not bash a company who has never done anything to you.
I'm tired of my VW dying all the time, so I'm going car shopping this weekend. I was going to look at Toyotas anyway; this couldn't have happened at a better time for me.
I would totally buy one. I think this whole thing is getting blown out of proportion. People love to bring down companies in the number one spot.
My parents had an American made mini-van that had not one, but FOURTEEN recalls (or at least, that's when we stopped counting) -- including issues with seat belts that came undone in a crash. The sliding door actually fell off too.
I guess domestic cars are like Windows products -- so used to bugs and problems that they're practically a source of entertainment.
For about a year I made an extra principle payment on my mortgage. Then I took a step back to think about why.
First of all, the last time my home was appraised, it came in about 30k higher than when I bought it about 3 years ago (I live in an urban area).
Second of all, I'll probably only live in this house for 5 more years.
Third, the interest is tax-deductable.
Fourth, if I'm going to put money into my house, i'd rather put it towards home improvements (which my home desperately needs) to not only bolster it's value, but also leads to my own greater enjoyment of the home.
Why lock up that money that I'm just going to end up getting back when I sell the house? Doesn't make much sense to me.
I'm not in the market for a car, but all I know is that when I see a Toyota in my rearview mirror, I get out of the way!
IF I were to buy another Toyota, it would be a model from before the drive-by-wire system got regular use within the company. One would think Toyota would have learned from VW's reliability issues with being so reliant on the ECU for everything.
Stupid, stupid Toyota.
I used to be a strong advocate of paying down the mortgage early. In fact, for a dozen years I have dutifully paid down my mortgage with extra principal payments. I've now got just over $100k to go before it is all paid off.
That being said, starting in 2009, I began taking the money I was applying towards the extra principal and "holding it" in a "high-interest" savings account because I firmly believe high inflation is coming thanks to our government's reckless money printing and deficit spending.
In such a high inflation environment, it would make little sense to pay down the mortgage early. Why pay down a 4% 30-year loan with today's more valuable dollars if high inflation is going to utterly destroy the value of them later?
For now, I'll continue to hold that money until I am convinced the gov't has returned to a path of fiscal restraint and sound fiscal management that will maintain some semblance of integrity to our currency. When/if they do, I'll take all the money I've been collecting and apply it to the mortgage.
Otherwise, it will eventually be committed to other places.
Best,
Len
Len Penzo dot Com
I would love to buy a toyota! I wish I had enough cash to walk into a toyota dealer today and walk off with a car. I am sure some dealers would be taking a lot off the top to move some inventory now.
Too bad we are in debt! Next time :(
For me it makes sense to pay down my mortgage at least until I hit the 20% equity mark so I'm not throwing money at PMI. The sooner I jump that hurdle, the better the ROI of those extra payments is over the next several years. After clearing that magic number, I'll likely need to reassess where it makes sense to put the extra money (most likely retirement accounts). As an employee, I don't have a growing 20% business to invest my money into. I suppose I could lend it out, but venture capital seems outside my current risk tolerance.
I'd buy one, every company makes mistakes.
I relocated at the (literal) drop of a hat in mid-2008 to get a better job and close the gap on a long distance relationship. I had an apartment at the time and a roommate, so essentially I allowed the roommate to maintain the apartment until the end of the lease, paid 1/2 the rent by mail each month and didn't lose out on my deposit or any fees.
I moved from Northwestern PA to Southeastern PA where it's about 75% more expensive to live. Living with my boyfriend has been a huge cost saving measure and allowed the move to be a little less of a financial issue.
I can't see how the move would have been as easy (or even possible) had I owned my former home. When your job sucks (or is non-existant) or you're driving 350 miles to see your significant other, well, a move isn't a bad idea!
I'm doing a homemade gift, a lamp, and doing dinner at home. The personalized romance novel seems like a "novel" idea, har har har. I might give it shot seems fun and unique.
I'd definitely buy one if I were looking for a new car right now. But my 1998 Toyota Avalon with 235,000 miles on it is still running perfectly and looks like it will be for quite a while yet, so I guess I'll miss out on this opportunity.
there is no 30 day trial. They charged my credit card 30 seconds after getting it in the order then claimed for the next 3 days that they did not have any order yet from me. There are NO LIVE SERVICE PEOPLE. Instead they offer an animated live chat with operators in a foreign country named"Honey" Stella" and "Ruby" who ask the same id questions have you hold for 30 minutes and then come back and tell you to check back in 2 hours.
There are hundreds of people in the same boat. DO NOT ORDER. The good reviews u read are placed by employees meant to dupe you. They are making tons of money by overcharging cards I'm calling the attny genl and better business bureau.
Come on people, the only reason the Us government is so hard on Toyota is because they are the competition!! How many recalls have there been with other car manufacturers and there has not been a big issue made of it. It is the US government who owns GM so of course they want them to go under. Not going to happen. And no they are not getting greedy or cutting corners. They make the same excellent car they always have. Epic fail? ... crap!!
Age 25, been saving since 16. Maybe we should stop focusing on ages, but I think it's important for young people to realize that "earlier is better." The site already posts its fair share of "later is better than never" stories, so why not something for the younger crowd?
I'll be forwarding this story to all of my 20-something friends!
If you feel like you can't save anything, this article probably wasn't meant for you. Attitude plays a HUGE role in personal finance. It doesn't matter what you earn - save 6-10%. Cut back on cable, trim your cell phone features, or eat out one less night per week. It's doable with the right mindset.
It appears Toyota may have royally screwed up this time, but from personal experience, I have a Toyota 2001 Avalon that has been virtually FLAWLESS. It is well-kept, always garaged, looks great, runs great (currently 175,000 miles) follow the maintenance schedules religiously -- and has been a total delight.
Having said that, Toyota corporate seems to have gotten a royal case of the same stupids as corporate America. GREED and cutting corners. I believe epic fail may be at hand!
I agree with your thought here...it would be nice for a reality-check article on when people DO start to save, and keying in on how to guide the 30-somethings in there financial and savings choices!